Paycheck Protection Loans Program to Small Businesses
Congress has approved a paycheck protection loans program of up to $10 million each to small businesses as part of its most recent coronavirus relief package, referred to as the CARES Act. Loan maximums will be determined by a formula, described below, based on the borrower’s payroll costs, with per-employee salaries capped at $100,000.The Paycheck Protection Program is intended to cover payroll and operating expenses between February 15, 2020, and June 30, 2020. Loans will be forgiven for firms that take steps to protect 2019 employment and wage levels. Certain retroactive provisions are designed to encourage the reinstatement of reduced wages and rehiring of employees who have already been furloughed.
Loans are available to:
What is the maximum loan a business can receive?
The maximum loan must be the LESSER of $10,000,000 or the formula below:
How the loan is forgiven:
Tax-exempt loan forgiveness will be available for funds used to pay the following expenses for eight weeks from the loan’s origination date:
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. H V & Partners recommends that you consult professional tax, legal and accounting advisors before engaging in any tax, legal and accounting action or transaction.
- Westchester Office:
Hart Vida & Partners
400 Columbus Avenue
Valhalla, NY 10595
New York City Office:
295 Madison Avenue
New York, NY 10017
4 Landmark Square
Stamford, CT 06901